Business Strategy: A Competitive Advantage

A business strategy is an essential element of any business, becoming a highly valuable tool throughout the years no matter the industry or scale. Whilst it is widely understood that a business strategy is a vital element of a business, many business leaders feel confused about what exactly a business strategy is and what it isn’t.  

A business strategy, in its simplest terms, is a set of guiding principles in which the long-term goals and objectives of a business are clearly laid out and planned for. These guiding principles help to ensure that the business and its leadership stay on track, and that all decisions made and techniques employed along the way are in line with the strategy. Acting like a roadmap, a strategy describes how a business plans to operate, what its goals and priorities are, and which actions must be undertaken to achieve its objectives.  

 

Nilesh Waghela, a retired independent business advisor, spent his career helping business owners to design efficient and effective business strategies. As such, Mr Waghela fully understands their role in helping a business to achieve its goals, as well as understanding the component parts that make up a full and thorough business strategy.  

A Focus on Competitive Advantage   

 

A ‘competitive advantage’ is the one thing that a business has that its competitors don’t have - in other words, it is the thing that sets a business apart. Having a full comprehension of a business’s competitive advantage is essential when writing a business strategy, as it will be the reason why the company exists and operates. A business’s competitive advantage is also the reason why customers will choose it over others, and therefore business leaders must be able to communicate, amplify and capitalise on this competitive advantage, making it the focus of everything that they do.  

Understand the Strengths and Weaknesses 

 

What used to be referred to as a SWOT analysis (strengths, weaknesses, opportunities and threats), a business strategy should include a thorough assessment of a business’s strengths and weaknesses. By examining these strengths and weaknesses, business leaders gain a critical understanding of a business, gaining insight into what it does best, as well as those areas where it struggles to compete.  

 

The Importance of Having a Solid Digital Business Strategy

Silicon Valley is at the cutting edge of technology, but the rest of the world is catching up. Nowadays it is common to see small enterprises utilising digital services and technologies, holding their own against established players. 

Using the latest digital innovations is second nature to giants like Amazon, but even traditional businesses can enjoy the benefits of digital innovations. Establishing a solid digital business strategy keeps a business competitive. 

How to Get Started 

 

Aligning a company’s digital strategy and its business strategy will help keep it agile. A digital strategy demonstrates how a company can use technology to improve performance. An effective digital strategy outlines the competitive advantages such technology can provide, whether the business is redesigning its current processes or creating new offerings.  

 

Understanding that a digital strategy is a blueprint of a business’s future is crucial. Retired business advisor Nilesh Waghela knows that while the details of a strategy may change, embracing digital technology requires a firm commitment. 

 

A successful digital business strategy takes many aspects into consideration. Forward planning is crucial to optimise digital technologies and help a company thrive in a crisis. 

 

Online Sales 

 

An online presence may not work for every business, but there are ways to adapt. Retail businesses that list their most popular items online will benefit more than those without any digital presence. Where shipping is unavailable, creating a click and collect service opens up more custom. In the same way, service sector-based businesses can benefit from offering their services via video chat or packing them as instructional material. 

 

Entering the World of E-Commerce 

 

Establishing a online sales strategy is only part of the plan; finding the right platform to support an online presence is crucial. There are many technologies available, including mobile apps and third-party delivery services. When choosing the right medium to use, a business should consider how it affects scalability, support and the customer experience.  

 

Investing in an easy-to-use website is a top priority, as it will keep customers engaged and makes them feel comfortable enough to purchase. The mobile version of the website should be intuitive and easy-to-navigate, as this will expand its potential reach. 

 

Build Trust and Secure Customer Data 

 

Even if a company doesn’t require a lot of information from its customers, having a solid data management plan is important. Security breaches will harm a business’s reputation, while keeping data safe will build customer loyalty and trust. 

 

During times of uncertainty, utilising technology allows a business to thrive, while creating a sound digital business strategy will enable it to overcome difficulty and flourish during periods of growth.